21-Jan-2010 9:20 AM

China Southern enters agreement to purchase 20 A320 aircraft

China Southern Airlines signed (20-Jan-2010) an order with Airbus for 20 A320s, for delivery between 2011 and 2013. China Southern stated the price of the aircraft is "significantly lower" than the catalogue price of USD76.9 million per aircraft.  The airline added that the extent of the price concessions are "comparable to previous price concessions. The aircraft will be partly payable by cash and partly by financing arrangements with banking institutions. The carrier added that the acquisitions will increase the ATKs of the Group by 4.5%, compared to ATK levels at 31-Dec-2009. [more]

China Southern Airlines: "The aggregate actual consideration for the Airbus Aircraft, which is payable in cash, and determined after arm’s length negotiation between the parties, is significantly lower than the catalogue price as provided by Airbus SNC because of certain price concessions granted by Airbus SNC in relation to the Airbus Aircraft, in the form of credit memoranda which could be used to purchase the aircraft, spare parts, or any other goods or services from Airbus SNC," Company Statement, 20-Jan-2010.

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